Colgate-Palmolive to pay $18m penalty for laundry detergent cartel

Thursday, 28 Apr 2016 13:07:33 | Michael Janda

Colgate-Palmolive has been hit with the equal third biggest penalty for cartel conduct in Australian history for price and supply fixing of laundry detergents.

The personal care and cleaning products giant has been ordered by the Federal Court to pay $18 million in penalties after it admitted entering agreements that limited the supply and controlled the price of laundry detergents.

It will also pay $450,000 of the ACCC's costs and engage in an updated three-year trade practices compliance program.

The ACCC launched Federal Court action against the three major laundry detergent producers in December 2013, alleging that Colgate, Cussons and Unilever had engaged in cartel conduct, along with supermarket Woolworths.

The three multinationals and Australian grocery giant stood accused by the regulator of colluding to simultaneously switch the supply of laundry detergents to ultra-concentrates and stop selling standard concentrates.

Moreover, it was alleged that the three companies agreed to sell the ultra-concentrates for the same per-wash price as the standard detergents, rather than passing on their cost savings to consumers.

The ACCC said the agreements also standardised the products offered, including pricing, package size and the strength of concentrate offered.

The regulator contrasted this behaviour with New Zealand where, when similar products were launched, there was significant discounting.

The ACCC is still pursuing Cussons and Woolworths in the Federal Court, with the matter listed for hearing in June 2016.

The regulator is seeking pecuniary penalties, declarations, injunctions, compliance programs and costs.

Unilever applied for immunity protection in the matter as an informer.

AustraliaPlus

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Colgate-Palmolive to pay $18m penalty for laundry detergent cartel

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